Correlation Between BUA FOODS and INDUSTRIAL MEDICAL
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By analyzing existing cross correlation between BUA FOODS PLC and INDUSTRIAL MEDICAL GASES, you can compare the effects of market volatilities on BUA FOODS and INDUSTRIAL MEDICAL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BUA FOODS with a short position of INDUSTRIAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BUA FOODS and INDUSTRIAL MEDICAL.
Diversification Opportunities for BUA FOODS and INDUSTRIAL MEDICAL
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BUA and INDUSTRIAL is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BUA FOODS PLC and INDUSTRIAL MEDICAL GASES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDUSTRIAL MEDICAL GASES and BUA FOODS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BUA FOODS PLC are associated (or correlated) with INDUSTRIAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDUSTRIAL MEDICAL GASES has no effect on the direction of BUA FOODS i.e., BUA FOODS and INDUSTRIAL MEDICAL go up and down completely randomly.
Pair Corralation between BUA FOODS and INDUSTRIAL MEDICAL
Assuming the 90 days trading horizon BUA FOODS PLC is expected to generate 38.58 times more return on investment than INDUSTRIAL MEDICAL. However, BUA FOODS is 38.58 times more volatile than INDUSTRIAL MEDICAL GASES. It trades about 0.24 of its potential returns per unit of risk. INDUSTRIAL MEDICAL GASES is currently generating about 0.23 per unit of risk. If you would invest 39,490 in BUA FOODS PLC on October 23, 2024 and sell it today you would earn a total of 2,010 from holding BUA FOODS PLC or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BUA FOODS PLC vs. INDUSTRIAL MEDICAL GASES
Performance |
| Timeline |
| BUA FOODS PLC |
| INDUSTRIAL MEDICAL GASES |
BUA FOODS and INDUSTRIAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BUA FOODS and INDUSTRIAL MEDICAL
The main advantage of trading using opposite BUA FOODS and INDUSTRIAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BUA FOODS position performs unexpectedly, INDUSTRIAL MEDICAL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in INDUSTRIAL MEDICAL will offset losses from the drop in INDUSTRIAL MEDICAL's long position.| BUA FOODS vs. GOLDLINK INSURANCE PLC | BUA FOODS vs. FIDSON HEALTHCARE PLC | BUA FOODS vs. INTERNATIONAL ENERGY INSURANCE | BUA FOODS vs. STACO INSURANCE PLC |
| INDUSTRIAL MEDICAL vs. ABC TRANSPORT PLC | INDUSTRIAL MEDICAL vs. UNION HOMES REAL | INDUSTRIAL MEDICAL vs. FIDSON HEALTHCARE PLC | INDUSTRIAL MEDICAL vs. AFRICAN ALLIANCE INSURANCE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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